Interserve Share Discussion Threads

[sr2day] 19/10/2017 08:52

uninvestable at the moment.could slide a lot further.

[apfindley] 19/10/2017 08:52

Eodfire. Is it? The company may have a strong order book, but they are heavily wounded from their £160m+ writedown on the waste contract, which has now been bloated by a further £30m+.As such they will fall outside their covenant agreements, which I'm sure they will successfully renegotiate, but at what cost. The reaction has justified by the uncertainty with which the group operates at present. They talk also about renewals, but some major clients in heavy industry are not renewing service contracts, fact.

[fenners66] 19/10/2017 08:51

"The trading update is just stating what we already know !"

On Monday some thought it was normal course of business for consortium of lenders to call in EY
Now company says its going to breach lending covenants.

I would argue that its not what some were expecting at all

[fenners66] 19/10/2017 08:48

"aimed at improving margin performance to industry norms."

given they have a £7bn order book and CLLN have a £20bn order book that is a large chunk of the industry between them and they aim to be at industry norms - I reckon they are already there.

Nice words but the reality arguably is that the margins are wafer thin or non existent.
If that is an industry norm then economics of supply and demand says 1 of 2 things should happen.

Either demand increases - judge yourselves but government still in austerity mode, economy has already been growing for some years,

or supply falls.

[eodfire] 19/10/2017 08:46

Massive overreaction.

[glenkaz] 19/10/2017 08:45

Bloody hell cannot believe sp! Losses I thought you'd be profit by now! Recovery was all going so well! Only reason I sold out as saw a better opportunity short term! Atb! 🤡✌A039;

[deanmatlazin] 19/10/2017 08:43

Taking all of these factors into account, we now believe there is a realistic prospect that we will not meet the net debt to EBITDA test contained in our financial covenants for 31st December 2017. As previously announced, we are engaged in constructive and ongoing discussions with our lenders. We have engaged a financial advisor to assist us in these discussions, as well as looking at options to maximise the short and medium term cash generation from the business.


They are going to breach financial covenants. Bad news. Short this to 1p

[fenners66] 19/10/2017 08:41

csmwssk12hu - if you thought it was going to be even worse than this - you could have said so

[luisfrg] 19/10/2017 08:38

Make that 35!

[luisfrg] 19/10/2017 08:37

Down 32% overreaction???

[edmundshaw] 19/10/2017 08:36

So half the business is working OK, the other half is a huge problem. Can the remaining half support the debt, the pension deficit and the liabilities in EfW and the poor construction performance and margins? Will the banks see more value in a break-up?

I have no idea. As a gamble this might look a good bet to some, but ... I also worry about the future business given various ongoing economic uncertainties and "headwinds"... Not for me.

[cfc1] 19/10/2017 08:35

kirk 6 - agreed. It also seems like some huge buys so far and yet price smashed? MMs can only reduce based on buy or sell ,,,,what a week - now losing £24K !!!!!

[kirk 6] 19/10/2017 08:24

Read today's statement and didn't think it was any worse than expected? What was the market expecting. Lost touch here as sold at 98p a while ago We're glen? You in here

[rhatton] 19/10/2017 08:22

That’s what you have to see here.

There’s is a business turning over £3 billion + a year churning away in the background. As soon as the EfW is out of the way next year even if it overruns into the middle of next year then your someoway on the road to recovery all ready.
Debt is an issue but will come down in time.

[schofip] 19/10/2017 08:21

i have heard 8 black is a good proposition

[losses] 19/10/2017 08:19

Looks like the recent director n insti buys are well underwater...I do believe it will be turned around... remember last time it moved from. 100 to 700 within 3-4 years

[rhatton] 19/10/2017 08:18

Analyst call at 0830. Will post anything good that comes of it

[fenners66] 19/10/2017 08:18

cfc1 - also did not criticise you - just pointed out that you have no argument to back up your points

[fenners66] 19/10/2017 08:15

cfc1 - why did you argue there was no problem? As if you knew exactly what you were talking about.


You might not like a bit of sarcasm as a "military man" I would not have thought you could be so sensitive.


I have not posted day after day either - I gave a view on the news - which some thought they could ignore but seems it was bad news after all, the share price could still do anything , but it has reacted sharply down so far.

[csmwssk12hu] 19/10/2017 08:11

Well flagged in advance tbh I thought this would have been worse, if anything that statement shows signs of stabilisation, only when everyone else is selling is the time right to buy, personally I feel that time is now imho dyor gla

[rhatton] 19/10/2017 08:10

I actually think today is a buying opportunity if you like a bit of risk.
They will agree news terms with the banks, no doubt less favourable and the new guys under Debbie will now be looking at all ways to improve the business going forward. They have to survive.

[losses] 19/10/2017 08:07

Hands up I got it wrong. Hopefully things can improve in the future.Not selling though and will ride out the storm.Been here before 10 years ago when it fell to around 100p

[bookbroker] 19/10/2017 07:58

These businesses are too opaque to invest in these days, the contracts have little or no margin for any potential rise in costs, amazed Clln. still not raised capital, but then the share price currently does not allow for dilution, it may be inevitable, shareholder equity will be virtually wiped out!